Every year brings an opportunity for a fresh start—and no small amount of fretting about the future. There’s merit for this year’s agitation: Last year’s market volatility, the ensuing losses in many Americans’ savings, and the surge in both inflation and interest rates didn’t stop with the turn of a calendar page. Today’s workers are still facing an uncertain market, and challenges remain in determining not only how much they need to retire but how to turn that money into an income stream they can safely spend throughout retirement. Employers, meanwhile, are tackling the task of implementing new legislation and the latest, best thinking on what a great retirement plan looks like.
The good news is that all these developments have the potential to help both retirement plan sponsors and participants improve their retirement outlook. We surveyed our clients, consulted internal and external experts, and assessed the latest research to synthesize a dizzying array of information into three major trends that plan participants and sponsors should expect to see in 2023.